Return to Transcripts main page
Connect the World
UK PM Vows to Be "Circuit Breaker," Bringing Major Change; Burnham Promises Immediate Economic Relief & New 10-year Plan; Spanish Football Team Arrive Home After World Cup Win; At Least Six People Dead After Two Earthquakes in Peru; Oil Briefly Tops $90 a Barrel for First Time Since Mid-June. Aired 9-10a ET
Aired July 20, 2026 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
ELENI GIOKOS, CNN HOST, CONNECT THE WORLD: Britain has a new prime minister, the seventh in just 10 years. It is 02:00 p.m. in London. It's
05:00 p.m. here in Abu Dhabi. I'm Eleni Giokos. This is "Connect the World". Also coming up, a ninth straight night of U.S. strikes on Iran as
another American service member is killed.
And we will be live at the White House for more details on that. And celebrations late into the night in Spain after winning the World Cup in
extra time. We have 30 minutes to go before the start of trade in New York. I want to check in on those U.S. futures, and they're all pointing to the
upside.
As you can see, NASDAQ up 1 percent S&P and down much stronger as well. Also check in on the oil prices later, where we're seeing some movement
there. A lot happening on the market front today. Now, in just a matter of weeks, Andy Burnham has gone from being the mayor of Greater Manchester to
MP to Labor leader and today Britain's New Prime Minister.
The official handover happened just in the last couple of hours, as scripted according to tradition. Ongoing and outgoing PM Keir Starmer
offered his resignation to King Charles, who then invited Mr. Burnham to form a government outside of 10 Downing Street?
The new prime minister promised to tackle the frustrations gripping the country starting on day one.
(BEGIN VIDEO CLIP)
ANDY BURNHAM, BRITISH PRIME MINISTER: Britain needs to show the world that we can regain our stability once again, and that is our challenge, to make
politics work, to make it work better.
(END VIDEO CLIP)
GIOKOS: CNN's Anna Stewart has been following this all day from the prime minister's residence and joins us now. Anna, what a day. You know, Andy
Burnham, no lectern needed, no notes, and many people wanted to hear about his stance on domestic policy. Very little on foreign policy.
But he basically says that he's going to be the circuit breaker in Britain. Did the audience, did the people get what they wanted to hear?
ANNA STEWART, CNN CORRESPONDENT: Well, you've got to remember, and he makes this point that he is the seventh prime minister in just over 10 years. So,
he's trying to have something of a reset and promise that you know we're not going to see a forever revolving door here at Downing Street, and that
policies will get done.
There will be a plan. In terms of specifics, though, we haven't had that much, largely because there's been no leadership contest for Andy Burnham.
He was uncontested by the Labor Party, and of course, no general election. So, really, in terms of grilling Andy Burnham on where he stands on various
policies, that just simply hasn't happened.
In the speech today, we were hoping to get a little bit more. He did say that he will be entering Number 10 and immediately giving instruction to
end rough sleeping in the UK. How that will happen, how much it will cost, no detail at all. But that was one policy.
Other than that, it was just broadly talking about reindustrialization, nationalization, and devolution. You know, taking pat out of Westminster.
Very broad-brush policies, we know, and have been leaked through the press in the last few days. But there is a plan to come, he says. Take a listen
to this.
(BEGIN VIDEO CLIP)
BURNHAM: Later this year, I will bring forward a new plan for Britain, a 10-year plan, laying out a path from where we are now to where I believe we
all want Britain to be, wherever we're coming from, whatever party we support.
(END VIDEO CLIP)
STEWART: So that was what we got from Andy Burnham. We will be getting more information, and actually tomorrow we will hear more about how he plans to
tackle a cost-of-living crisis, how he hopes to, you know, bring bills down. Parliament is currently in recess and won't sit again until
September.
So, in many ways, he won't be grilled by the opposition for some time to come at this stage, Eleni. So, he's got a fair run at it. He'll be
traveling around the UK, almost a campaign trail, if you will, meeting different politicians, meeting people up and down the country, bringing
together a country who hopes and creating the plan that we don't yet have.
GIOKOS: Yeah, a campaign trail that perhaps he didn't get to do ahead of all of this, but interesting times. Anna Stewart, great to have you on with
us today. Joining us is Greg Cook with the political consulting firm Helm.
[09:05:00]
He formerly served as Head of Political Strategy for the UK Labor Party, and he says he's going to do things differently. Greg, great to have you
with us. I want you to give me a sense of you know what you thought of Andy Burnham's speech. No lectern, no notes. What can you glean from his first
address, given that he made quite a lot of promises where he said this is going to be a circuit breaker for Britain.
GREG COOK, FORMER HEAD OF POLITICAL STRATEGY FOR THE LABOR PARTY: Well, I think the style was very important, and the fact he's a much more relaxed
kind of character and will probably come over better to the electorate is a key ingredient of why the Labor Party has turned to him at this point.
I think the -- as regards the content of what he said and what he said in his speech last week, which was sort of pretty similar, really. The thing
that I found fascinating was that there was very little in what he said that you couldn't have imagined Keir Starmer being able to say.
Perhaps Starmer probably wouldn't have gone into the kind of you know philosophical stuff about the reversing the 1980s reforms and so on, but
actually, what we're dealing with here is not a change of political direction. There are members of the Parliamentary Labor Party who would
want Andy Burnham to move more overtly to the left.
But actually, he said he's sticking to the manifesto, and that's because there is very, very broad agreement across the party about the content of
that manifesto and the political direction. And Labor is really betting on the fact on the hope really that the fact that it's you know been doing
very badly in the polls and in elections is simply because Keir Starmer was unpopular rather than because the policies were unpopular themselves.
And I think in terms of the actual specifics we've had, you know, I think what we have to remember about Andy Burnham as well is that he's not been
an MP. He's not been in Westminster for nine years, and that means he's been out of the kind of run of politics.
He's not been, you know, he probably doesn't know who many of his new MPs are, and he's not been in the kind of day to day nitty gritty of dealing
with issues and legislation that's come through. And in that context, it's quite difficult for you to come forward with kind of precise legislative
stuff.
So, he's very much relying on the things which define him, which is that he's been a mayor, regarded as a successful mayor, certainly a popular
mayor in Greater Manchester. And one of the achievements which he had there was to make a big dent in rough sleeping, which is why he's probably picked
on that particular thing in his speech today.
GIOKOS: Yeah, I mean it's really interesting because Keir Starmer had a public mandate and he was voted in, you know, by overwhelming majority.
Here is a man that was basically whisked into this position. He's going to do sort of this roadshow. I guess it buys him some time because PMQ is only
set to restart in September. Can he get voters on his side?
COOK: Well, I think, as I say, the change of personality will potentially make a difference for Labor. And already in the polls, there's a slight
kind of jump in Labor's rating. That may be because Nigel Farage, the Leader of Reform, the main opposition party in the polls, at least at the
moment, is going through his own difficulties.
So, you know, on that level, he might. I think what's much more difficult to call is whether this political direction he's setting out is going to
have any kind of greater appeal than what Starmer had set out, and you know the content of the manifesto which Labor was elected on, and so on.
This is a very left -- it's been a very left-wing government, probably the most left-wing government Britain's ever had since 1945 under Keir Starmer,
even though he had a very kind of emollient public face. One of the things which Andy has talked, Andy Burnham has talked about, is being more kind of
consensual and collegiate, and trying to get away from the kind of toing and froing of insulting other parties and so on.
If actually that's a genuine change of tone, that could make a difference as well. But at the moment, we're you know awaiting to see what the hard
policies are going to be that are going to actually change things and make this circuit breaker, which he's talking about.
One of the peculiar things, which is I think partly a product of the fact he hasn't been an MP for so long, is that you still don't know for certain
who his chancellor is going to be. And the tradition in British politics is that prime ministers and chancellors basically come as a package.
GIOKOS: Yeah.
COOK: And if you get any kind of daylight between them, then that becomes fatal. So, you know it's quite revealing that becoming prime minister, he
didn't, in his own mind, know clearly who that was going to be because whoever that person is, and it looks likely to be Shabana Mahmood now, is
going to be the person who's actually going to carry the weight of most of the heavy lifting on turning the economy round.
GIOKOS: All right, Greg Cook. Great to have you with us. Thank you so much for those insights. Moving on, and the war between the U.S. and Iran shows
no signs of slowing down. U.S. President Donald Trump says Iran was hit very hard after a ninth consecutive night of U.S. strikes.
[09:10:00]
The Pentagon has also confirmed an American service member has been killed in Iraq during the detonation of a downed Iranian drone. Meanwhile, there
are new attacks on shipping as a vessel burns off the Coast of Oman after being struck by an unknown projectile.
Despite the heavy exchange of fire, both Washington and Iran say they remain open to diplomacy. I want to bring in CNN Senior White House
Reporter Kevin Liptak, and we also have CNN Producer Leila Gharagozlou joining us now. Great to have both of you with me.
Kevin, I want to start off with you. And President Trump says Iran was hit very hard. And yet in all of this, where we've seen escalation over the
last nine days, there's talk about diplomacy, perhaps still being alive. Is there a realistic path back to negotiations?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: I think there is, if both sides of this come to the recognition that you know this is very quickly
spiraling in a way that would be very difficult to control. And so, I think you do hear people, and I think it's notable who you're hearing it from,
which are the diplomats on either side of this, suggesting that they view a way back to the negotiating table.
You heard Marco Rubio, the Secretary of State, saying that Iran was actually communicating both directly and indirectly that it wanted to
negotiate. And you hear from the Iranian Foreign Minister Abbas Araghchi, as well, saying that the negotiations could begin quote, when you have
achieved reliable battlefield and strategic gains.
I think the question is whether the political decision makers on either side of this see a pathway back to talks. And President Trump, for his
part, has suggested over the last couple of weeks that he doesn't view the Iranians as credible negotiators, and that he thinks there is a job to be
finished militarily.
And so, whether he really views a pathway to diplomacy here, I think, is an open question. And you have seen escalating strikes from both sides. Last
night, Central Command saying that it had carried out the ninth straight night of attacks on Iran. And you see both the U.S. and Iran increasingly
going after some sensitive civilian infrastructure, including water desalination plants, power plants.
On the U.S. part, it's been striking roads and bridges in southern Iran, which I think is leading to some anxieties that it is preparing for some
sort of ground invasion there. And I think even the deaths that you have seen over the course of the last several days just indicates that even
absent a ground invasion by the United States.
The American troops remain very much in harm's way. You know the vast military installations that are arrayed across the Middle East. And I think
those deaths really pose some very serious questions for President Trump about where precisely he sees all of this heading.
As the cost for Americans, both in terms of gas prices and energy, but also in terms of American lives, seems to be increasing.
GIOKOS: Yeah. All right, Kevin. Thank you so much for that. Layla, I want to turn to how we've seen major escalation over the last few days, nine
days in fact, retaliation between both sides. You've seen U.S. service members that have been killed as well, vessels under attack in the Strait
of Hormuz.
There's concern that the range and scope of this war is widening into a far bigger regional war. What are you hearing?
LEILA GHARAGOZLOU, CNN PRODUCER: Yeah, so I think both sides are very concerned about this escalation and potential expansion. Over the last nine
days, we've basically seen the U.S. focus its strikes on that southern region of Iran, what is considered to be the defensive arch in Iran.
These coastal cities and islands that allow Iran to hold control of the strait. Now, if the U.S. expands inward, and we have heard reports of
explosions near Tabriz, you could see the Iranians also escalate and expand their range of targets throughout the region. Meaning that this situation
is quite fragile, and we could see it escalate very, very quickly.
Now, over the weekend, the IRGC through a number of different Iranian channels basically said that if the U.S. escalates, they're going to
respond in kind. They're very big on proportionality and proportional responses. This is something that we've seen with the Iranians in 2020,
2024, 2025.
So, it's really going to come down to whether these two sides can kind of tone down and de-escalate if they can find an off-ramp. Otherwise, we are
headed to a much wider conflict.
GIOKOS: Yeah, very quickly in terms of the Bab al-Mandab Strait, because there's major concern that the Houthis will be activated to also, you know,
block the strait there, which is obviously a lifeline for a lot of the oil that is exported out of Saudi Arabia. Where are we with that --
GHARAGOZLOU: Yeah, so we are hearing that the Yemeni armed forces could be closing the Bab al-Mandab. If they do, it's obviously going to throw
another wrench into the oil markets and what's going on. Obviously, the strait, according to the Iranians, remains closed.
So, any more pressure on the market is obviously going to impact market prices, the average person rising cost.
[09:15:00]
GIOKOS: All right, Leila Gharagozlou as well as Kevin Liptak. Thank you so much for that update. Good to have you with me. All right, still to come,
celebrations across Spain after the country's second ever men's World Cup title. We hear from the winning and the losing fan bases.
Plus, social media influences Andrew and Tristan Tate are due in a Miami court as they battle a UK request to extradite them for a number of sexual
offenses.
(COMMERCIAL BREAK)
GIOKOS: The World Cup champions are back home. The plane carrying Spain's national team landed within the past hour after their dramatic extra time
win over Argentina Sunday. Spain's men claiming their second ever World Cup crown. Ferran Torres' goal in the 106th minute broke a lengthy deadlock in
a match dominated by the Spaniards at New York New Jersey Stadium.
And this marks the first men's World Cup victory for Spain since 2010, and their fans are absolutely thrilled.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This is incredible. This is the best part of my life, the best moment of my life.
UNIDENTIFIED FEMALE: We're over the moon. Spain thoroughly deserved this win. Fully deserved. We're the best in the world.
UNIDENTIFIED MALE: It's beautiful to see how the country comes together for the same cause, there are few occasions where we can all celebrate the same
thing together.
UNIDENTIFIED FEMALE: And today, we will take out the flag without any political agenda, without anything, all for Spain and for the same cause.
(END VIDEO CLIP)
GIOKOS: While Spain rejoices, Argentina fans are disappointed their team could not achieve the rare feat of winning back-to-back World Cups. CNN's
Stefano Pozzebon has reaction in Buenos Aires.
(BEGIN VIDEOTAPE)
STEFANO POZZEBON, CNN CONTRIBUTOR: Sadly, it wasn't to be after a commanding performance in the World Cup final. Spain beat Argentina one-
nil, and here in Buenos Aires, it feels like the end of an era. It could have been the last match of Lionel Messi's international career.
A few fans are sticking around here in the Buenos Aires Fan Fest just to appreciate the images of the awarding ceremony. But really, it's just a bit
of sweet tears for a nation that really supported the run of their national team. One of many is Guillermo. Guillermo, it felt like the end of an era.
It could be the last match from Lionel Messi. How do you feel about?
GUILLERMO, ARGENTINA FAN: Indeed, very sad. An illusion that faces away. Spain was superior, and well, the team give it all, and we are very proud
to feel this passion when we play. I'm proud of the team, and I'm proud of the families that support the team and support the coach.
POZZEBON: And Guillermo, I've seen a lot of people clapping at the Spaniards when they won. There is a lot of football respect between these
two nations.
GUILLERMO: Yes, I think that's something that Scaloni always told us and said in the press conference.
[09:20:00]
This is sport, and sport unites the world. Third player above all.
POZZEBON: Thank you so much. Scaloni, being of course the Argentinian Coach Lionel Scaloni, the question is whether he will stick around with the team.
But yes, this is the prevailing sentiment here in Buenos Aires, applauding the worthy winner and celebrating a run from the Argentinian team that
surprised many because it was not a commanding run as well as in 2022.
(END VIDEOTAPE)
GIOKOS: All right, Stefano Pozzebon there for us. And we have CNN's Pau Mosquera joining us from the Madrid Barajas Airport. Pau, good to see you.
Tell me about the excitement, how people are feeling.
PAU MOSQUERA, CNN CORRESPONDENT: Well, let me tell you, Eleni, that it has been a long night for many, many fans as they were celebrating at the early
hours of the morning, but I can bet that for many of them celebrations are going to continue over this Monday because La Roja has already made it to
Madrid.
They have gotten here to the Spanish capital on board of this Airbus 350. I bet that they have had no rest inside of it, and they still have quite a
busy schedule ahead of them. Right now, they have been taken to the inside of the terminal fort of this Madrid-Barajas airport because they have to go
through the passport control as they are coming from a third country.
This is from outside the European Union. And then after that, they're going to have a little space to get some lunch, to get some rest. But immediately
after, they will be transferred to the Zarzuela Palace, as the royal family is going to offer a reception to them. They want to congratulate all the TM
for the victory.
After that, they're going to go to Monclos Palace as Spanish Prime Minister Pedro Sanchez is going to do the same. And right after that, then it's
going to start the part that most of the fans are waiting and starving for. This is the victory parade. We're going to see the players on board of a
bus where they're going to be showing off the trophy of this World Cup, and they will be rooting old downtown Madrid until they get to Cibeles' Square.
You know the place where normally La Roja celebrates every victory, like they did two years ago when they beat England in the Euro Cup final, or for
example, Real Madrid also celebrate their victories. And I think this is going to be quite a long celebration because they're going to share the
trophy with the hundreds of thousands of fans that are expecting in there.
The authorities are actually expecting, Eleni, that around 1 million people will attend the celebrations, Eleni.
GIOKOS: All right, Pau Mosquera, thank you so much for that update. Now, social media influencers Andrew and Tristan Tate are set to appear in U.S.
federal court Miami today to fight an extradition request from the UK. British authorities want the brothers returned to face sexual offense
charges, including rape and sex trafficking.
They deny any wrongdoing. The brothers have gained a large online following while also drawing controversy for promoting content that advocates male
dominance and a lifestyle centered around wealth and power. CNN's Carolina Peguero is following this story for us from Miami.
Good to see you. What are we expecting in the courtroom today?
CAROLINA PEGUERO, CNN CORRESPONDENT: Well, lots to unpack, Eleni. This morning we just spoke to the lawyer who gave us an update of their clients.
The Tate brothers were arrested during this weekend as they were heading to a boxing event here in Miami, and now there's reactions from everyone,
including them.
They are being accused by the UK for sexual abuse of seven victims during the years of 2010 and 2017 in England and in London. Now the UK officials
have been saying they have been following this extensive and complex investigation. And the U.S. Department of Justice here is saying that the
Tate brothers are in current extradition proceedings.
They are facing at least Andrew Tate is facing 42 charges, while his brother Tristan Tate is facing 17, including rape, sexual assault, and
human trafficking. We spoke to their lawyer, Joseph McBride, and this is what he says as far as this being a political hunt and a political
kidnapping, and that he's going to do everything possible to have them be free.
(BEGIN VIDEO CLIP)
JOSEPH D. MCBRIDE, ATTORNEY FOR ANDREW & TRISTAN TATE: -- to have their day in court. If we win that case and we feel great, we feel very positive that
we will. If we win that case, we're going to destroy every allegation that was made against them. And if that happens, then everybody who's called
them traffickers or rapists or whatever it is, all the allegations will blow up.
[09:25:00]
The narrative will collapse. United Kingdom knows that, so it's pulling out all the stops to politically kidnap them, to lock them up in a cell
somewhere in the United Kingdom, so they can't have their day in court here.
(END VIDEO CLIP)
PEGUERO: And according to their lawyer, he's saying that they expect several hearings before they get extradited. While they're expected to see
a judge today, 02:00 p.m. Eastern Time here in the U.S. And we are going to head in that courtroom as well to see what is going to happen later today,
Eleni.
GIOKOS: Yeah, just very quickly. I mean, look, the court decided today about the extradition process, are we talking about a lot more to come on
this front?
PEGUERO: For what we know right now, this is a very uncommon process, and for it to be expedited, according to the lawyer, he's saying that he
expects several hearings. We have reached out to the Department of Justice. We haven't heard yet as to if they are expected to be returned to the UK
later today.
However, we do know they're here in court and they are in a federal holding as of right now, and they are expected to be in the courtroom, Eleni.
GIOKOS: All right, Carolina Peguero, thank you so much. All right. Still to come on CNN. We're watching oil prices. Middle East tensions escalate.
Let's check in on Brent crude, which is the global benchmark for oil. As you can see, sitting at $88 a barrel. WTI sitting at 82.
We'll break those numbers down for you in just a moment. Stick with CNN.
(COMMERCIAL BREAK)
GIOKOS: Welcome back. I'm Eleni Giokos in Abu Dhabi, and you're watching "Connect the World". These are your headlines. Britain has a new prime
minister. Labor's Andy Burnham was appointed to the post today by King Charles. Burnham says he will unveil a 10-year plan for the country in the
coming months.
He's also promising to tackle the high cost of living and end homelessness in the UK. U.S. President Donald Trump says Iran was hit very hard after
nine straight nights of U.S. strikes, while the Pentagon says a U.S. service member has been killed in Iraq. Both Washington and Iran insist
diplomacy remains an option despite the intensifying fighting.
Ukrainians woke up to air raid alerts and smoke-filled air Sunday morning, as Kyiv says Russia launched one of its largest ballistic missile attacks
in more than four years. Authorities say one person died in the capital, while at least 16 more were killed across the country over the weekend.
[09:30:00]
Russia later confirmed the massive strike via its Telegram account. In Peru, at least. Six people have been killed and 21 injured following a pair
of earthquakes. The quakes hit Saturday night in a mountainous region 300 kilometers east of Lima. The leader of the country's National Defense
Institute says 48 homes were destroyed and 300 people are being provided with tents.
Right, a few seconds to go before the start of trade in New York, and there you have it. New York up and running, and marked by nine days of escalation
here in the Middle East, of course impacting oil prices. But the Dow Jones sitting up a quarter of a percent right now in the early moments of trade.
The NASDAQ and S&P also showing a positive start while they find their feet. I also want to tell you about what's happening on the oil price
front, and of course, major movement happening there. In fact, we saw Brent crude climbing up above $90 a barrel, it's subsided somewhat now, sitting
at 88, and WTI sitting at $82 a barrel.
That is down four tenths of a percent. And of course, we've been seeing renewed strikes on vessels in the Strait of Hormuz. And in fact, according
to Kpler data, only eight vessels transited the strait yesterday, Sunday. We have seen time and time again a lot of issues coming through in the
strait.
And importantly, traffic in the strait is now sitting at around a three- week low. Where this all heads is a very big question, but it's all going to be impacting oil prices going forward. All right. I want to bring in my
guest to discuss this further. We've got Bjorn Vang Jensen, Executive Industry Adviser at Xeneta Freight Analytics Platform.
Great to have you with us. Look, we're already seeing oil prices climb and shipping through the Strait of Hormuz remaining subdued. When you see what
is happening right now? Are you concerned that perhaps this could be a signal of what could be the new normal? Because a lot of industry experts
are worried that that is what we're seeing right now.
BJORN VANG JENSEN, EXECUTIVE INDUSTRY ADVISER AT XENETA: I think there will. Thank you for having me, Eleni. I think there will be a new normal. I
don't think we've seen yet what the new normal is. It appears to change daily. You're absolutely right. Over the weekend, my numbers of the last 72
hours, we show 19 vessels having transited the straits.
These numbers are uncertain, as you know, right? There's a tremendous amount of GPS spoofing their vessels that go dark, turning off their AIS
transponders. But 19 vessels, of which one was a very small Iranian container ship that transited into the North Corridor.
So, things are basically at a standstill. The UAE may have signaled a little bit of what that new normal may eventually look like with the
announcement last week of the projected expansion of the external ports of Khor Fakkan and Fujairah over on the east side of the UAE.
And that makes a ton of sense from a strategic standpoint. It makes zero sense from a commercial standpoint, but commercial is really out the window
here now because resilience matters a lot more.
GIOKOS: Yeah.
JENSEN: The GCC countries, in total, have already 100 percent overcapacity in terms of their container handling capabilities across their various
ports, inside and outside the Gulf, and this will only add to it. But it just makes a ton of sense.
GIOKOS: So, Bjorn, you know, you guys at Xeneta, as you're sort of scenario planning where oil prices are going to go and how long this is going to
last. What is the best and worst-case scenarios that you're currently working on?
JENSEN: The worst-case scenario is that the new normal, as you called it, becomes some sort of regulated transit through the Strait of Hormuz, which
will present an awful lot of problems. There will be all kinds of legalities around paying for transit, no matter whom you pay.
There will be uncertainty unless there is lasting peace, and I don't think anybody sees that coming for weeks, maybe months, lasting peace, maybe a
year, that we will see this either a tit for tat or very, very uncertain return of commerce to the straits, particularly if a vessel can use
external ports.
Be that Jeddah, be that King Abdullah in the kingdom, be that Khor Fakkan and Fujairah. I think that's going to be something that continues for a
very long time. Best case --
GIOKOS: Yeah, look, I mean, Brent crude --
JENSEN: Yeah.
[09:35:00]
GIOKOS: Yep. Best case.
JENSEN: Your guess is as good as mine, honestly. I think we're all CNN is running, you know, 24/7 in my household, and the situation changes that
quickly, right? I personally, if you ask me --
GIOKOS: I know, it's --
JENSEN: It's a month or two before there's something that approaches what we had two weeks ago, right? And I may have to eat those words in an hour,
right? It's that volatile.
GIOKOS: All right, that's true. So let me ask you this, Bjorn, because I'm looking at the oil prices, and you know they did come down, and now they
hit over, Brent crude hit over $90 a barrel once again.
JENSEN: Yeah.
GIOKOS: You know it's a major concern to see so much oil taken out of the global market on a day-to-day basis. What is your prognosis on where oil
will go?
JENSEN: Oh God, I'm not an oil trader. I could get in a world of trouble here, but I don't see it going down very much any time soon. Is it 100? Is
it 110? I think you should ask an oil trader about that. What I know is that if you look at a global supply chain scenario and where these impacts
really hit in terms of oil prices.
And here I'm just talking about the impact on shipping, right?
GIOKOS: Yeah.
JENSEN: First of all, when you start diving into global supply chains, you must realize quickly that they're not chains, they're webs, and what that
means is just like in the spider web, if you break one strand, that can have all kinds of unintended consequences on the extreme opposite side of
the web, right?
There are some effects of these high oil prices. One of them we've just seen in the dramatic spider freight rates, and that was caused by carriers
announcing both container carriers and -- sort of fuel adjustment surcharge increases, but they announce them with a lag. So, these -- they can't
change the price from one day to the other.
They have to give a certain warning period, and what that causes is what we call front loading, and that means cargo owners all over the world will be
rushing to ship cargo out, whether it makes sense or not, simply to get underneath that dead line. All right, and this is what's part of what's
caused the dramatic spike in freight rates that we've seen recently.
Then you might reasonably ask, well, at some point, do this freight rates start coming down if there is peace if there is free transit through both
the Strait of Hormuz and Bab al-Mandab.
GIOKOS: Yeah.
JENSEN: Yes and no over time, yes, in the short term, it will have the rather perverse effect of causing port systems, especially in Europe, to
collapse.
GIOKOS: OK. All right, Bjorn, we've run out of time, but thank you so much.
JENSEN: You're welcome, Eleni.
GIOKOS: It's been so good to speak to you during these uncertain times, as you and I know things could change in a blink of an eye. Thank you, Bjorn.
All right. Apple and Google are clashing with the EU over AI assistance. The European Commission is demanding that Google give more virtual agents
broader access to Android customers by July of next year.
The move is designed to level the AI playing field, as Google's Gemini and Apple Siri have long held an advantage amongst smartphone users. But the
tech giants are pushing back, saying the changes could put users' privacy at risk. CNN's Lisa Eadicicco is across the latest from New York for us.
Lisa, Good to have you with us. What do you think is the playbook for Google and Apple?
LISA EADICICCO, CNN BUSINESS TECH EDITOR: So, I think what we're seeing here is the European Commission, as you mentioned, is asking that Google
open up Android to give other AI assistants the same level of access to Android as Gemini. And that's really critical here because, for one, Apple
and Google have such enormous influence over the devices that we use because they run the software that powers it.
And I know we're talking about Google right now, but Apple is in a very similar situation. In June, it said it would not launch Siri AI on iPhones
and iPads in the EU because of these rules. So, I think what we're seeing here really is kind of a difference in opinion here of how this should play
out moving forward.
And I think this is just an example of that. And the EU only represents a slice of the smartphone market. It's around 427 million phones compared to
the 5 billion in use around the world, but I think it still brings up that bigger question of as people use AI assistants to get things done, and if
they're not opening apps as often to do things and relying on these AI assistants, which company is going to be at the heart of that?
Which company is going to control that? And obviously, you know, Apple and Google already playing a massive role on smartphones won't want to give
that up and cede that territory to another company like OpenAI or another popular AI assistant maker. So, I do think we can continue to expect to see
pushback on some of these rules.
[09:40:00]
Apple and Google have noted that they are both working with the EU, so we'll have to see how this plays out moving forward.
GIOKOS: All right, Lisa Eadicicco, thank you so much for joining us. Good to see you. Well, Spain are world champions for just a second time, but
have touched back down in Madrid as heroes. Bring you that story right after this. Stick with CNN.
(COMMERCIAL BREAK)
GIOKOS: Welcome back. After 104 matches, the World Cup has wrapped up, and Spain are the champions. We've got Don Riddell joining us now. I mean, Don,
what a hard-fought victory. I was, I stayed up. I have to say, I was watching last night. Took quite some time to get that first goal, to get
the only goal. But tell me.
DON RIDDELL, CNN WORLD SPORT: Yeah, it was a really, really hard-fought victory. I think in the end, the one nil scoreline flattered Argentina a
little bit. Spain absolutely dominated the game. They were deserving champions of the match. Many observers felt that Spain came to play,
whereas Argentina really didn't come to play.
They just tried to kind of stop Spain playing. There was a situation during that game where it looked as though Argentina might be able to win the game
on a penalty shootout, despite not even having a shot on goal. But in the end, Spain won it, deserving champions. They're going to be partying all
day back in Madrid.
GIOKOS: Yeah, I'm sure. All right, Don Riddell. We'll see you right after the short break. I'll be back at the top of the hour. Stick with CNN.
(COMMERCIAL BREAK)
[09:45:00]
(WORLD SPORT)
[10:00:00]
END
